Day rate of return on the index


A benchmark market value index is comprised of 3 stocks. Yesterday the three stocks were priced at $14, $24, and $50. The number of outstanding shares for each is 740,000 shares, 640,000 shares, and 340,000 shares, respectively. If the stock prices changed to $18, $22, and $52 today respectively, find out the 1-day rate of return on the index?

A. 3.93%

B. 8.78%

C. 6.53%

D. 5.52%

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Finance Basics: Day rate of return on the index
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